LETTER FROM THE CHAIRMAN 12
It is funny how some things have not really changed that much in my life. My mom
used to say to me that I loved operating bulldozers and farm equipment because I did
not have enough Tonka toys when I was little–I used to jokingly respond by asking her,
“Whose fault was that?” Besides the instructions that my dad provided, there are several
things that allow me to operate our Foundation the way I do. I have no patience, which
can often be a problem, but in our Foundation’s work, it drives urgency. If people are
dying, if people are being forced from their homes or if people are living in fear, if we
do not have urgency, then we shouldn’t be working there. If we’re going to head home
the minute bullets start to fly, when the Embassy issues a no travel advisory, or when
some nonprofit organizations are pulling out, then we shouldn’t be working there. Not
everyone is interested in this type of work, but we gravitate towards it.
We are often able to operate more quickly and with more flexibility than larger foundations.
For example, on Wednesday, November 9, 2022, the Russian military began its retreat
from the city of Kherson, and two days later, on Friday, November 11, Ukraine declared
Kherson liberated. By 5:00 p.m. that same day, I received a text from an executive from
the WFP, asking if our Foundation could provide $9 million to feed 100,000 people
in Kherson for three months. There was a particular urgency to this request because
Kherson’s residents had already been without regular access to food for many months
due to the Russian occupation. We knew we needed to move quickly. Our staff worked
through the weekend, and by Monday morning, November 14, we had wired the funds
to WFP.
I have been in many similar circumstances where our small staff size and flat organization
structure allows us to make decisions and deploy resources quickly where others cannot.
I remember one meeting I had years ago in Mozambique with the executive director of
WFP and a senior program representative from a huge foundation. We were discussing
the need to quickly move food assistance into Sudan where thousands of people were
starving. I said our Foundation would commit $10 million to WFP for immediate food
assistance if the representative from the other foundation who was also present would
do the same. Unfortunately, and despite an annual grantmaking budget that was nearly
80 times larger than ours at the time, the representative did not have the authority
to make a similar commitment on the spot. This experience, and similar ones like it,
reminds me how fortunate I am to have the ability to make decisions quickly. As our
grantmaking budget has grown, we have made sure to retain that ability to be flexible
and able to deploy our resources where they are most urgently needed.
I think some of this approach is also the result of what I learned from my dad’s selective
and subtle approach with me when I was growing up. He was big on letting us make our
own mistakes; I had no shortage in this area. But he also had a subtle way of expressing
confidence in us. I argued with my mother for weeks to go to Czechoslovakia in 1969
when our foreign exchange student Vera invited me. My mother refused to let me go.
Finally, at the right time, my dad simply said, “Let him go; it will be good for him.” He was
right: it was a life-changing experience. Later in 1990, when former Congressman John
Cavanaugh was planning a trip to the Soviet Union, my dad simply said, “Why don’t you
take Howie?” I could list many more of these moments where a few words from my dad
changed my life and how I saw the world. These were opportunities and an education
that were irreplaceable.
OUR APPROACH
I believe a family foundation usually reflects the personality of the first generation to oversee
it. I realize that the next generation will not see risk, understand risk or embrace risk the
way I do. That is one reason why, when our Foundation was created, the prerequisite my
dad gave us kids to receive money was that we needed to stay actively engaged in the
operations of the Foundation. Another clear directive was that we would never create an
endowment to perpetuate the future of our Foundation. We were also afforded another
incredible freedom: to pursue what we were passionate about. We were never given
instructions or guidance about what to support. I do remember one night at the dinner
table in the early days of the Foundation when most of our grantmaking was focused
on conservation work, out of nowhere, my dad asked me, “Why cheetahs?” I believe
he was just curious, but I had a hard time going to sleep that night trying to answer that
question for myself. Another subtle lesson.
In today’s hyper-digital world, every person has a platform to criticize, misinform or
humiliate a person on just about anything. It is one reason our Foundation does not
maintain a social media presence. Social media becomes a distraction, and too often,
people are reacting with little first-hand knowledge while making some terribly bad
assumptions, or just projecting their own personal political views. As a private foundation,
we are legally required to stay out of politics, which makes it easier to focus on our job
of improving peoples’ lives based on the experiences we see first-hand informed by
the people who are living those experiences and proposing solutions we can fund. We
always want to be transparent about where we focus our resources and why, but you
will not see it on social media. It is why I write this letter and why we publish an annual
report and post it to our website.
Another subtle lesson, this one learned from watching my dad for over 60 years, is
to operate as lean as possible. Our operating percent relative to our distributions is
consistently below 2.25 percent and we have an incredible team of 14 people who
distributed $307 million in 2022 in some of the toughest places in the world. We have a
great board of trustees that cares about what we do and helps our team succeed. And